JOB WORK UNDER GST ACT

1. Job-work has been defined to mean any treatment or process undertaken by a person on goods belonging to another registered person.
2. Job worker is a person who does job work.
3. Job-work under GST law has been declared as 'supply of service, and taxed accordingly.
4. Procedure relating to job-work 
5. The registered person (Principal) has to declare the place of business of the job worker as his additional place of business except where the job worker is registered or where the principal is engaged in the supply of such goods as may be notified by the Commissioner.
6. Inputs, which include intermediary goods, or capital goods can be sent without paying GST to a job worker for job work and from there subsequently send to another job worker.
7. The principal can avail ITC on the inputs and capital goods sent for job work. However he is  not required to reverse the ITC availed on inputs or capital goods dispatched to job worker. Further goods can be got directly dispatched from supplier's premises to job worker's premises.
8. The goods have to be sent under the cover of Challan which shall contain the details specified Rule 55 of CGST Rules, 2017.
9. Said inputs, after completion of job work or otherwise are required to be brought back within  one year.
10. The capital goods, other than moulds and dies, jigs and fixtures, or tools, are required to be brought back within three years. 
11. Where the capital goods are sent directly to a job worker, the period of three years shall counted from the date of receipt of capital goods by the job worker.
12. The inputs or capital goods other than moulds and dies, jigs and fixtures, or tools, after completion of job work or otherwise, can be sent out, within one year and three years, respectively from the place of business of a job worker on payment of tax within India, or with or without payment of tax for export. 
13. If the inputs/capital goods as above are not received back or not supplied/exported within the prescribed period, it would be deemed that goods were supplied by principal on date when these were sent for job-work. In such case Challan will be treated as invoice.
14. The details of challans in respect of goods dispatched to a job worker or received from a job worker during a tax period shall be included in FORM GSTR-1 furnished for that period · 
15. Any waste and scrap generated during the job work may be supplied by the job worker directly from his place of business on payment of tax, if such job worker is registered, or by the principal, if the job worker is not registered.
16. The responsibility for keeping proper accounts for the inputs or capital goods shall lie with principal.
17. Intermediate products are included in the definition of inputs. 

Transitional arrangement relating to Job-work

1. If inputs as such or after partial processing or semi-finished goods have been sent under the earlier laws to a job worker and returned under the GSI regime then no tax is liable to be paid if such goods are returned back within 6 months from the appointed day i.e. 1st July, 2017.
2. If the said goods are not returned within a period of 6 months, then the company has to reverse the input tax credit availed under the earlier law on such goods 
3. Excisable goods law, which are removed without payment of duty for any process not amounting to manufacture, irrespective of the fact whether manufacturer is registered or not under the earlier law, if returned after 6 months from the appointed day then ITC shall be liable to be recovered, else no tax will be paid.